FBI probe hits Hub exec

Charges he illegally steered campaign cash to Mass. pols

Jerry KronenbergWednesday, September 01, 2010

Credit: Jess Gatley

An FBI corruption probe that originally targeted ex-state Sen. Dianne Wilkerson, above, has expanded, with authorities charging a Hub businessman for secretly steering campaign cash to a virtual who’s who of Massachusetts politicians.

An FBI corruption probe that originally targeted ex-state Sen. Dianne Wilkerson has expanded, with authorities charging a Hub businessman for secretly steering campaign cash to a virtual who’s who of Massachusetts politicians.

The U.S. Justice Department yesterday charged Martin Raffol with leaning on business associates to donate to specific candidates, then illegally reimbursing people for the contributions.

“Transparency is the cornerstone (of) campaign financing,” U.S. Attorney Carmen Ortiz said in announcing the charges. “The public has a right to know the true source of financial support for its elected officials.”

Authorities didn’t indicate that they believe any politician knowingly participated in the scam, which allegedly raised $42,000 between 2003 and 2009.

Still, prosecutors said U.S. Reps. Michael Capuano, William Delahunt, Barney Frank and Stephen Lynch all got money from Raffol’s efforts.

Authorities also said several unspecified state and local officials benefited. A source told the Herald that list includes Gov. Deval Patrick, Lt. Gov. Tim Murray, Boston Mayor Thomas M. Menino and others.

Raffol, 54, is a former executive vice president of the WinnCompanies, a major Hub developer best known for its failed bid to build the $800 million Columbus Center in Boston.

Prosecutors claim Raffol hatched the fund-raising scheme in a bid to advance Winn’s political interests.

The Justice Department said the scam aimed to get around campaign-finance laws that limit how much money one person can donate to a particular campaign.

Authorities say Raffol induced three Winn vendors to give money to specific candidates, then let them submit inflated invoices to get the funds back.

Prosecutors said the FBI uncovered the scheme as part of a 2008 probe of Wilkerson, a former state senator currently awaiting sentencing after pleading guilty to taking bribes.

The Justice Department said investigators probing whether Winn gave Wilkerson anything illegal got one of the vendors in Raffol’s scheme to spill the beans.